Small Business Loans

SBA Loans are loans that are guaranteed by the U.S. government. With an SBA loan your business can take advantage of longer repayment terms with higher borrowing limits. Qualifying criteria are generally more flexible than conventional loans. Less cash is needed with down payments often as low as 10%. University Bank has the expertise and the resources to provide complete loan packages for most businesses.

SBA 7(a) Program

Proceeds can be used to fund equipment purchases, business acquisitions or expansion, finance permanent working capital or purchase real estate.

SBA 504 Program

Minimum equity infusion of 10% (15% for start-ups or single purpose real estate and 20% if both conditions apply)

University Bank will provide a conventional mortgage with first lien position

A Certified Development Corporation (CDC) will partner in the financing with a second mortgage for 30% to 40% of the total project cost that is fully guaranteed by the SBA. Maximum SBA portion is $1.5 million / $2 million in special cases and $4 million for manufacturers. The CDC’s fee is 2.75% plus attorney’s fees.

Businesses qualify if they do not have a tangible net worth in excess of $2.5 million after taxes for the proceeding two years

51% owner occupancy required, new construction 60%

University Bank must approve interim financing for the SBA portion because of the SBA debenture funding process